Potential Brexit Deal strengthens Sterling across major currency pairs

The beginning of the week saw the GBPEUR rate spike up over half a cent. The pound strengthened following comments from EU chief negotiator Michael Barnier during a speech in Slovenia. He stated that we could expect a Brexit deal in 6-8 weeks.

It was also mentioned in the news that November 13th is the day they will push for as a potential target for a Brexit summit where a deal may be put in place.

If you’re buying a property overseas then it’s worth noting the date as the markets will be very volatile. Brexit plays a major part on sterling strength resulting in the rate to go either way on all major currency pairs. The GBPUR rate is extremely sensitive to Brexit news. The closer we get to a potential deal, the stronger the pound gets.

Tomorrow is the key day this week as key data is being released. We have the European Central Bank and the Bank of England interest rate decisions. Interest rates are expected to remain the same for GBP and Euro however do be cautious of comments in the BOE monetary policy statement or the ECB press conference. Depending on how they plan to deal with future fiscal policies, such as Quantitative Easing for the ECB will be key for currency movements.

If you’re buying a property overseas and want to discuss how to save money on your currency transfer then get in touch with your Account Manager today to secure your cost ahead of purchase to benefit from the spike and to avoid the risk of rate falling.